DO OEM NAME BRANDS STILL DOMINATE ?

[Anonymous]

DO OEM Name brands still dominate ?
Original equipment manufacturers of cartridges now have about 80 percent of the market, said Jim Forrest, an analyst with Lyra. Worldwide, inkjet sales last year were $26.6 billion, with $5.6 billion sold by the after-market companies. By 2009, after-market companies should sell $10.1 billion out of total sales of $38.5 billion, Lyra predicts.
The situation is less dramatic for laser-toner sales. In that segment, after-market sales last year were $4.7 billion in a total market of $22.2 billion. By 2009, after-market sales should rise to $7.5 billion out of a total market of $33.3 billion.
One major reason for the advance of the after-market industry is that more people are becoming aware that it exists, Forrest said. “Five years ago, a lot of people weren’t even aware that they had an alternative.”
Once people know about the aftermarket, they often become customers because the price is lower and quality has improved “significantly” over the past several years, he said. Franchises are also opening up in part because less expensive machines to refill cartridges have become available.
Tim Fitzpatrick, a spokesman for Lexmark International, headquartered in Lexington, Ky., disputes Forrest’s assessment about the improved quality of after-market products.
“There is a significant difference between new and used in terms of quality – that’s a fact,” Fitzpatrick said. Consumer Reports , Wilhelm Image Research, PC World  and PC Magazine  have all studied name brands and the knockoff products and concluded that the name brands are better, he said. “With laser printers, the difference is even more pronounced.”
People in the after-market industry vigorously disputed that assessment.

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October 20, 2005 at 11:19 AM